Teenagers seeking employment in the summer of 2023 are witnessing a surge in opportunities and higher wages compared to previous years. With an increasing number of young individuals entering the workforce, it is a great time to make smart earning choices and learn the importance of financial responsibility.
A Surge in Teen Employment
According to data from Gusto, economists are predicting a robust summer for teen employment in 2023. Teenagers account for 18% of all summer hires, a notable increase from the 15% reported the previous year. The market for teen workers has never been hotter, reflecting a growing demand for their services.
Rising Wages for Teen Workers
Not only are job opportunities expanding, but the wages for teen workers are also on the rise. Gusto's New Hires Pay Index reveals that hourly wages for teenagers have grown significantly over the past year, with a remarkable 9% increase among 15 to 19-year-olds. In contrast, workers aged 25 and older experienced a decline of 6% in their average wages, per CNBC. This upward trend in wages reflects the strong labor market and heightened demand for low-wage jobs.
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Increased Labor Force Participation
The current strong labor market and elevated demand for teen workers have contributed to a rise in their labor force participation. Recent figures from the US Department of Labor indicate that a greater proportion of teenagers between the ages of 16 and 19 are now part of the workforce. In 2022, 37% of teenagers were employed compared to 35% in 2019. This indicates a shift towards a greater work ethic among teenagers, with more individuals seeking employment both during the summer and while attending school.
Areas of Teen Employment
Teens are finding more meaning and enjoyment in certain workplaces like amusement parks. RideAway Adventures owner Mike Morrison shared that they have a steady application of teen employees for summer 2023, per 9News. Teens prefer RideAway to other workplaces because they are not confined to a desk or washing dishes. They can spend their summer outdoors in an environment they would prefer. Morrison added that new teen hires in RideAway start off at $15 an hour (the state’s minimum wage) but depending on their performance, each hire can gradually earn 50 cents more per hour toward the end of July.
There's an increased demand for workforce in certain jobs in some parts of the country and hence, wages for these positions have spiked. In New York City, a shortage of lifeguards has pushed wages above $20 an hour, per The New York Times.
New Laws Favoring Teen Employment
A 2022 law in New Jersey now permits 16- and 17-year-old workers to put in up to 50 hours per week during the summer to help staff the Garden State’s tourist attractions on the Jersey Shore, per Fox Business. Iowa Gov. Kim Reynolds also recently signed a law that will allow 16- and 17-year-olds to serve alcoholic beverages in restaurants and increase the hours that minors can work.
The Importance of Financial Responsibility
While the increase in job opportunities and wages is undoubtedly promising for teenagers, it is crucial for them to adopt a balanced financial approach. Gregg Murset, CEO of BusyKid, a savings app for kids and families, emphasizes the significance of teaching young adults the value of responsible financial management. He encourages his own kids to put some of their earnings in a savings account or a retirement account and to start donating to a cause or investing (buying small shares) in companies that they can relate to, like Netflix or Amazon.
“If they earn it and burn it, that’s a big problem,” said Murset.
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Digital Financial Experience
As transactions become increasingly cashless, it is crucial for teenagers to develop familiarity with digital financial tools. Keeping track of balances and investment portfolios through mobile apps and online platforms provides a practical and convenient way to manage finances. By embracing this digital experience, teenagers can cultivate good financial habits that will serve them well in the future.
Future Perfect
According to the Labor Department, there are roughly 1.6 jobs open for every person that is unemployed at present. This ratio is about 1:1 during other times, per 9News. The labor crunch is reducing as an increasing number of people are joining or rejoining the workforce and since a significant portion of this is a young workforce, it spells good news for the country's growth in the coming years.
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